Gaming with Accountability

India’s online gaming industry has rapidly evolved from a niche pastime into a digital powerhouse, with over 590 million players in FY24 and revenues touching US$3.8 billion. Valued at ₹23,000 crore in 2023 and projected to reach ₹70,000 crore by 2027 at a 20% CAGR, the country is now one of the world’s largest gaming markets. Real-Money Gaming (RMG) dominates this landscape, contributing 83% of revenues in FY23. Following the GST hike to 28% in 2023, gaming tax collections surged 412%, bringing in ₹6,909 crore within just six months.

To address these challenges while promoting innovation, the Government has introduced the Promotion and Regulation of Online Gaming Bill, 2025. This landmark legislation aims to create a secure, responsible, and innovation-friendly digital gaming environment. It seeks to regulate online money games, protect vulnerable users—especially youth—and safeguard public health, financial integrity, and national security.

Key Definitions

To provide regulatory clarity and eliminate ambiguity, the Promotion and Regulation of Online Gaming Bill, 2025 expressly defines critical terms central to the industry:

1. E-sport
   An online game that:
   • is played as part of multi-sport events;
   • involves organized competitive events between individuals or teams in multiplayer formats governed by predefined rules;
   • is recognized under the National Sports Governance Act, 2025, and registered with the relevant Authority or agency;
   • has outcomes determined solely by players’ physical dexterity, mental agility, strategic thinking, or similar skills;
   • may involve payment of registration or participation fees for entering competitions or administrative costs, and may include performance-based prize money; and
   • does not involve bets, wagers, or stakes by any person, participant or otherwise, nor any winnings from such bets or wagers.
2. Online Game
   Any game played on an electronic or digital device and operated as software through the internet or other electronic communication technologies.
3. Online Money Game
   An online game, whether based on skill, chance, or a combination of both, where users pay fees, deposits, or stakes with the expectation of winning monetary or material rewards. Importantly, e-sports are excluded from this category.
4. Online Social Game
   An online game that does not involve staking money or other valuables; it may charge subscription or access fees, provided these are not wagers. These games are designed solely for entertainment, recreation, or skill development and are neither online money games nor e-sports.

Key Provisions of the Bill

1. Establishment of Authority
   At the heart of the Promotion and Regulation of Online Gaming Bill, 2025 lies the creation of the National Gaming Regulatory Authority (NGRA). This body will oversee licensing, compliance, and regulation of online gaming. The Authority may be empowered to:
   • Decide if a game qualifies as an online money game, based on applications or on its own initiative.
   • Recognize, categorize, and register online games.
   • Exercise other necessary powers as prescribed.
   This ensures consistent and effective regulation across the industry.
2. Ban on Offering Unlicensed Online Money Games
   No individual or entity is permitted to offer, support, promote, or engage in any form of online money game or online money gaming service without proper authorization under the law.
3. Prohibition on Advertising or Promoting Online Money Games
   All forms of advertisements—across digital, print, or electronic media—that directly or indirectly promote online money gaming are strictly prohibited. This includes endorsements, inducements, or any attempt to attract users to such platforms.
   The Promotion and Regulation of Online Gaming Bill, 2025 tackles misleading promotions head-on. Advertisements can no longer promise “easy money” or glamorize gambling-like play. By tightening these rules, the government aims to shield vulnerable groups, particularly youth and economically at-risk individuals, from deceptive marketing and false promises.
4. Restriction on Financial Transactions for Online Money Games
   Banks, payment gateways, financial institutions, and intermediaries are barred from processing or facilitating any payments or fund transfers related to unlicensed online money gaming services.
5. Search and Seizure of Property
   The Promotion and Regulation of Online Gaming Bill, 2025 grants authorized officers the power to enter, search, and arrest without a warrant any person reasonably suspected of committing, having committed, or being about to commit an offence under the Act. This applies to both physical and digital spaces, including buildings, vehicles, computer systems, electronic records, storage devices, and virtual digital environments. Officers may override access controls or security codes if necessary to gain access.
   The Bill’s broad powers to search, arrest without warrant, and override digital security raise concerns about potential privacy violations and abuse of authority. The wide definition of “any place” risks overreach, and overriding existing laws may weaken safeguards for due process and civil liberties.

Penalties and Enforcement

To deter malpractice, the Promotion and Regulation of Online Gaming Bill, 2025 enforces strict penalties:

Additionally, in case of non-compliance with the provisions related to online money gaming, any related information or content on computer resources may be blocked for public access under the Information Technology Act, 2000. These measures strengthen enforcement by enabling swift action against illegal activities and limiting their online presence.

Conclusion

The Promotion and Regulation of Online Gaming Bill, 2025 provides clear distinctions between games of skill and chance, ensuring steady revenue while addressing serious concerns like addiction, financial risks, and unregulated operations. By balancing regulation and innovation, it protects consumers and supports industry growth. The Promotion and Regulation of Online Gaming Bill, 2025, serves as a forward-looking framework that safeguards players, boosts tax revenue, and fosters a fair market—positioning India as a global leader in responsible online gaming.

Disclaimer

The information provided in this article is intended for general informational purposes only and should not be construed as legal advice. The content of this article is not intended to create and receipt of it does not constitute any relationship. Readers should not act upon this information without seeking professional legal counsel.